Tip Pool Rule Challenges No Panacea For Upended Industry
By Braden Campbell (November 14, 2016, 5:34 PM EST) -- The U.S. Department of Labor's tip pooling rule, which bars restaurants from requiring their wait staff to share tips with employees in the back of the house, has major consequences for restaurants, their staff and the restaurant-going public.
For the restaurants blocked from giving kitchen staff a share of waiters' tips, the 2011 regulation poses a choice: Upset traditional pay practices and restaurant culture by doing away with tip pools, or risk costly class action litigation by maintaining them while the federal appeals courts, and likely the U.S. Supreme Court, sort out whether the rule is legal.
For staff, the rule...
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